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Coffee chain supply of coffee comprises of six distinctive phases namely agricultural, roasted production, additional processing, transport and distribution, consumption, waste management phases. Agricultural phase entails farming of green coffee with diverse treatments like…
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Download file to see previous pages... In processing, cleaning, storing, roasting, cooling, weighing, grinding and blending takes place. The only waste product in this phase is the parchment that will still be covering the bean.
Additional processing phase takes the coffee powder to manufacture product varieties. The package then takes place in cans made of aluminum or paper filters. Transportation and distribution phase includes transportation of coffee raw material, wastes and by- products depending on the production capacity and the location. Distribution of coffee takes place to the market either local, international level or national wide. The consumption phase includes the consumption depending on the tastes and the brands. The waste management phase includes the procedure of treating the wastes like chaff and coffee grounds.
The price of coffee: the supply curve has a positive slope to the price meaning that the higher the price, the increase the supply. Conversely, the lower the price, the decrease in the supply of coffee will be.
Income of the consumer: in this case, the higher the income that the consumer has, the increase in demand for coffee will be. Conversely, the lower the income the consumer posses, the decrease in the demand for coffee will be.
From the analysis the equilibrium price is that price where by the demand for coffee and the supply is equal in the market. It is the price which neither the buyer nor the seller complains. The equilibrium price is $200. From the analysis, the current price of coffee is selling at $230 the price which is higher than the equilibrium price. This makes the supply of coffee to be more than the demand. Conversely the demand is low as consumers have a low income which is a constrain to their ...Download file to see next pagesRead More
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